In May 2019, Shipping Company Groningen (SCG) started its own investment platform ShipFund. Now, the first four issued tranches have been filled, meaning the one million mark has been passed.
SCG provides full-service ship management to a worldwide operating fleet of approximately forty ships. The company owns a large part of these ships.
International shipping is characterised by its capital-intensive character. As a result, shipowners have an almost continuous need for additional financing. This is also true for SCG, even though it is a financially healthy organisation. That is why the company started issuing bonds under its own management via the investment platform www.shipfund.nl.
With the proceeds of the bonds issued through ShipFund, SCG seeks to increase its financial leeway to be able to react faster when market opportunities arise. Examples of expenditures are: co-funding of ship purchases, refinancing of existing positions so that the fleet can be operated more economically, ship modifications to new regulations including Ballast Water Treatment systems.
Blockchain Technology
With ShipFund, SCG is the first Dutch shipping company to use blockchain technology for the registration of participations, information storage and payments. By making smart use of blockchain technology, participation is possible from as little as € 250. These participations have a term of only two years and an annual return of 4.25 per cent. The interest is automatically paid every three months to the bank account of the investor. Participation can take place entirely online.
Unlike shipping investments in the past, a participant does not invest in just one ship, but the repayment of the bond is covered by the operation of the entire shipping company. SCG Holding BV has guaranteed the repayment of the bonds.
The company opens (smaller) tranches on a periodic basis, the first four of which have been filled. The fifth was opened for a total amount of 250,000 euros on 2 January.
Picture: SCG’s gearless box singledecker Veendijk (by Eoin Gardiner).
